BUDGET airline easyJet has revealed a rise in profits but warned it will become harder to pass higher fuel prices on to passengers.

The group reported a 31.5% increase in underlying profits to £248 million in the year to September 30, which was at the upper end of expectations, after a sharp rise in the number of business passengers.

It said around 45% of winter seats are already booked – about the same level as last year – but warned that weak consumer confidence across Europe would slow the rate at which higher costs can be passed on to passengers.